I’m currently residing in a home that’s part of a revocable trust in New York State, where I’m a beneficiary. I’m trying to figure out what type of homeowners insurance I should obtain. My current insurance agent mentioned that the trust acts as the landlord and I am considered a tenant. While I’m okay with this arrangement if it’s the only choice, I’m curious if anyone has alternative suggestions or insights.
Home in a revocable trust where I’m beneficiary and currently living in, what type of insurance do I get?
It sounds like you’re in a unique situation with your home being held in a revocable trust. Since you’re a beneficiary and currently living in the home, there are a few important points to consider regarding insurance:
Homeowners Insurance: Typically, if you are living in the home and the trust owns it, you would likely need a homeowners insurance policy for the property. This policy can protect against damages to the home itself, liability for injuries occurring on the property, and personal belongings inside.
Trust as the Named Insured: Your insurance agent is correct that the trust is the legal owner of the home, so you would want the homeowners insurance policy to be in the name of the trust. This ensures that any claims made are properly filed under the correct entity.
Coverage for Personal Property: Since you’re living there, you should also consider personal property coverage to protect your belongings. Some homeowners policies can include an endorsement or separate policy for personal contents.
Liability Coverage: Make sure that the policy includes sufficient liability coverage to protect against any potential claims for accidents or injuries that may happen on the property.
Possible Renters Insurance: If the trust is considered the landlord and you are viewed as a tenant, it might also be worth looking into a renters insurance policy for additional protection of your personal belongings and liability coverage.
Consult with Your Agent: Since you’re already working with an insurance agent, it’s valuable to have a detailed conversation. They can help clarify the best approach and ensure that you have the appropriate coverage based on your specific situation.
Legal Advice: It may also be beneficial to consult with a legal professional familiar with trusts and real estate in New York to ensure that your insurance needs align with the trust’s structure.
In summary, you’ll want to secure homeowners insurance in the name of the trust while considering your needs for personal property and liability coverage. Always need to keep communication open with your insurance provider to find the best policy for your situation!